The Armenian government has adopted a comprehensive package of tax law amendments that introduce significant changes for businesses operating in the country, particularly those involved in e-commerce, retail, manufacturing, and international trade. These changes, some of which already came into force, will have important compliance and operational implications for businesses operating in or selling into Armenia.

Key VAT Amendments

Armenian legislators amended the national Tax Law to align the country's VAT rules with the Eurasian Economic Union (EAEU) e-commerce taxation framework. New rules will come into force on January 1, 2027, and mainly apply to cross-border B2C sales of goods made through online marketplaces. 

Under these rules, marketplace operators may become responsible for calculating, reporting, and remitting Armenian VAT on qualifying sales to local consumers, regardless of VAT registration thresholds. New rules also introduce VAT reporting requirements, special procedures for VAT returns and refunds, and a simplified process for applying the 0% VAT rate to eligible exports of goods from Armenia to consumers in other EAEU countries through online marketplaces.

Additionally, Armenia introduced a special VAT framework for transactions involving gold products, including gold jewelry and items containing precious stones. Under these rules, which came into effect on July 1, 2026, the VAT taxable base for gold and jewelry transactions is no longer generally based on the full sales value of the item. Instead, special calculation methods apply.

For manufacturers, VAT is generally calculated on the value added through production, determined as the difference between the selling price of the finished product and the documented cost of the gold and precious stones used. For traders, on the other hand, the taxable base is the difference between the resale price and the documented purchase cost. 

The amendments also introduce anti-avoidance measures to address transactions involving artificially low prices or transfers without consideration and clarify the treatment of input VAT related to the purchase and importation of gold and jewelry.

In addition, the government adopted VAT-related amendments that focus mainly on improving tax administration, simplifying compliance procedures, and clarifying the treatment of specific transactions. These measures concern foreign currency transactions, more flexible rules for adjusting completed transactions, particularly related to returned goods, and expansion of VAT exemptions.

Conclusion

The recently adopted amendments bring new compliance obligations and may require businesses to review and adjust their existing tax processes, accounting practices, and reporting procedures to ensure compliance with the updated rules. A thorough review of current compliance processes and potential tax risks can help businesses identify areas requiring adjustments and reduce the likelihood of disputes with tax authorities.